Bankruptcy liquidation process of limited liability company:
1. Set up a liquidation team and start liquidation;
2. Notify or announce creditors and register creditor's rights, and creditors declare creditor's rights to the liquidation group;
3. The liquidation group shall clean up the company's property, prepare the balance sheet and property list, and formulate the liquidation plan;
4. Disposal of assets, including collection of accounts receivable and sale of non-monetary assets. Among them, uncollectible accounts receivable should be treated as bad debts, and losses can be deducted only after approval by the tax authorities;
5. Pay off debts;
6. Distribution of surplus property;
7. Make a liquidation report and apply for cancellation of company registration.
Second, analysis
After clearing up the company's property, preparing the balance sheet and property list, the liquidation group shall formulate the liquidation plan and report it to the shareholders' meeting, shareholders' meeting or the people's court for confirmation. After paying the liquidation expenses, employees' wages, social insurance expenses and statutory compensation, paying the taxes owed and paying off the company's debts, the company's property shall be distributed according to the proportion of capital contribution of shareholders of a limited liability company and the proportion of shares of shareholders of a joint stock limited company. During the liquidation period, the company shall survive, but shall not carry out business activities unrelated to liquidation. The company's property shall not be distributed to shareholders before it is paid off in accordance with the provisions of the preceding paragraph.
Three. Conditions for bankruptcy of a limited liability company
1. Limited Company is unable to pay off its debts due, and its assets are insufficient to pay off all debts or obviously lack solvency, the company or creditors may apply for bankruptcy;
2. If a limited company is found insolvent when it is dissolved and liquidated, the person in charge of liquidation shall apply to the people's court for bankruptcy liquidation.